Open Demat Account Online in 7 Easy Steps

Open Demat Account Online in 7 Easy Steps

An investor’s ability to store and exchange assets electronically is made possible by a demat account. By doing away with the need for actual certificates, this account offers investors a safe and practical option to store money. For the purpose of investing in stocks, mutual funds, and other assets in India, investors are required to have a Demat account. There are no such Demat account charges for opening it; however, there might be annual charges. We’ll go over the 7 simple steps for opening a Demat account online.

  1. Choose a Depository Participant in the first step (DP): A DP is a legally recognised middleman who offers holding and trading services for securities that are traded electronically. National Securities Depository Ltd (NSDL) and Central Depository Services Limited are the two depositories in India (CDSL). The DPs offer investors the required services, while the NSDL and CDSL keep track of the securities held in Demat form.
  2. Complete the Account Opening Form: After deciding on a DP, the investor must fill out an account opening form. The form may be downloaded at the DP’s website or collected from their office. The investor’s contact information, name, address, and PAN number are required on the form. The form additionally asks the investor to select the sort of account they want to open, such as a personal, joint, or corporate account.
  3. Provide the Required Documentation: Investors must present specific documents, such as identification, proof of address, and passport-size photos, in order to open a Demat account. A PAN card, an Aadhaar card, a passport, or a driver’s licence can be used as identification. A bank statement, utility bill, or Aadhar card can be used as the address evidence.
  4. Finalize the Contract: A contract defining the Demat account’s terms and conditions and the investor’s relationship with the DP will be provided by the DP. The agreement may address a number of topics, including fees and charges, account upkeep, and liabilities in the event of fraud or unauthorised activities. By executing the contract, the investor consents to follow the rules established by the DP.
  5. Personal Verification: Opening a Demat account requires completing an in-person verification (IPV) process. The DP’s office or a video conference might be used for IPV. The investor must sign the IPV document, and the DP will check the investor’s address and identification. In other circumstances, the DP may also request extra paperwork, such evidence of income.

  6. Connect the Bank Account: Investors must link their bank account to the Demat account after the Demat account has been setup. To make transactions easier, including the buying and selling of securities, this is required. The bank account information must be provided by the investor, and the DP will verify and link the bank account to the Demat account
  7. Start Investing: Investors can begin investing in securities such as stocks, bonds, and mutual funds once the Demat account is opened and the bank account is connected. Investors can submit orders for the purchase or sale of securities by logging into their Demat account using the DP’s online platform or mobile app.


So, setting up a demat account is pretty simple. You can keep shares and securities in Demat account in digital mode whereas trading account is that t where you can sell and buy shares and securities. Now, that you know the trading account meaning, it is also equally important tohave a trading account to start the trading.